Rupee trims fall in line with shares

Thu, Nov 5 02:21 PM

Enlarge Photo A man uses an electronic machine to check a currency note at a money exchange...

The Indian rupee trimmed its fall in afternoon session on Thursday in line with the domestic sharemarket but the dollar's gains versus majors overseas prevented a further uptick.

* At 2:12 p.m., the partially convertible rupee was at 47.14/15 per dollar, off a low of 47.25, but still below its Wednesday's close of 47.05/06.

* Shares were trading down just about 0.3 percent after having dropped more than 2 percent earlier.

* Net purchases of $14.2 billion of shares by foreigners so far in 2009 have been a key factor helping the rupee rise from a record low of 52.2 in early March. Last year, the rupee had fallen by nearly a fifth on portfolio outflows of more than $13 billion.

* The dollar index, a gauge of the U.S. unit's performance versus six majors, was up 0.4 percent.

* The dollar and the yen edged up on Thursday as short-term investors and Japanese exporters sold into a rally in the euro and higher-yielding currencies which followed a repeated pledge by the U.S. Fed to keep rates low for a while.

* In the currency futures market , the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at 47.1875 each, with the total traded volume on the two exchanges at about $2.3 billion.

(Reporting by Swati Bhat; Editing by Sunil Nair)

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